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The definition of total annual compensation includes all your benefits of employment. This includes your salary, time off benefits, what your employer pays towards your health benefits, retirement, and other fringe benefits.

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Akeem Hills

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3y ago

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What are you looking for in total compensation?

Its different per company/country and can be different inside of one company and the different countries that company is in. However, in the US it is typically Base Salary + Short Term Incentives (Bonus) = Total Cash Compensation. Total Cash Compensation + Long Term Incentives (Stock, etc.) = Total Direct Compensation (aka Total Compensation) Other calculations can be used to determine and factor in health benefits, retirement, and other 'compensation'. But as mentioned, these calculations will be different in different countries, but the above calculations are standard.


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